EML Payments (ASX:EML) - CEO & Managing Director, Tom Cregan
CEO & Managing Director, Tom Cregan
Source: EML Payments
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  • EML Payment (EML) has reported a considerable increase in gross debit volume (GDV) for the first half of the 2021 financial year but a fall in gross profit margins
  • During the half, EML recorded a 53 per cent increase in GDV from the prior corresponding period to $10.2 million
  • Not all segments contributed equally, GDV in the Gift & Incentive segment fell, while the General Purpose Reloadable segment did the heavy lifting
  • The company also reported that gross profit margins slipped 5 per cent due to the shift to General Purpose Reloadable, which has higher outsourcing costs
  • Nevertheless, revenue was up 61 per cent to around $95 million, putting EML on track to meet its full-year guidance of between $180 and $190 million
  • EML is also well placed to meet its earnings guidance after recording $28.1 million in EBITDA for the half
  • At the end of December, the company has $136.5 million in cash on hand
  • Shares have been trading 13.5 per cent higher at $4.78

EML payments (EML) has reported a considerable increase in gross debit volume (GDV) processed through its proprietary platforms but a fall in gross profit margins.

The payment solution provider operates in 28 countries in North America, Europe and in Australia and expects to process more than $18 billion in GDV in the 2021 financial year.

During the first six months of the financial year, EML recorded $10.2 million in GDV, up 53 per cent on the prior corresponding period (pcp).

Although, not all segments contributed equally. GDV in the Gift & Incentive segment fell 11 per cent to $0.75 billion following pandemic store and mall closures.

It was the General Purpose Reloadable segment which did the heavy lifting, up 233 per cent to $4.87 billion.

The company also reported that gross profit margins slipped 5 per cent from the pcp to 71 per cent. EML attributed this change to a segment shift toward General Purpose Reloadable which has higher outsourcing costs.

Nevertheless, revenue for the half was up 61 per cent to $95.3 million, putting EML on track to meet its full-year guidance of between $180 and $190 million.

EML is also well placed to meet its earnings before interest tax depreciation and amortization (EBITDA) guidance for FY21 of $50 million to $54 million after recording $28.1 million in EBITDA for the first half.

At the end of December, the company has $136.5 million in cash on hand.

Shares have been trading 13.5 per cent higher at $4.78 at 10:10 am AEDT.

EML by the numbers
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